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The fund is unique as it has been almost entirely raised from HNIs (high networth individuals) in India within two months flat.
This is an indication of where HNIs are parking their money in a bearish stock market, where companies are struggling to pull their IPOs through. The fund, Franklin Templeton Private Equity Strategy, will focus on investing in unlisted companies in infrastructure services, manufacturing and consumer-driven sectors. While the company did not comment on the corpus of the fund, Vivek Kudva, president, Franklin Templeton Investments (India), said: “We had launched Franklin Templeton Private Equity Strategy in April for Indian investors, focusing on unlisted companies in infrastructure services, manufacturing and consumer-driven sectors.” Speaking on the kind of the pace at which the fund has been raised, an industry analyst remarked that it appears that they marketed the fund as though they were selling a mutual fund product. Franklin Templeton, which has an asset base of $30 billion globally, has a significant presence in India through its mutual fund offerings. It has been active in the private equity market through Darby Asia Fund, which is understood to have committed close to Rs 250 crore to Indian companies. Darby Overseas Investments is the private equity arm of Franklin Templeton Investments and is focused on emerging markets with presence in Asia, Central and Eastern Europe and Latin America. In the recent past, Darby Asia Fund has made capital investments in Amalgamated Bean Coffee Trading Company, which runs the popular Café Coffee Day chain of coffee bars across India and also in Bhoruka Power Corporation, a wind energy generation company. |
Source: Business Standard